Agenda Item No.
THE VALE OF GLAMORGAN COUNCIL
CABINET: 18TH JANUARY, 2012
REFERENCE FROM SCRUTINY COMMITTEE (CORPORATE RESOURCES): 20TH DECEMBER, 2011
" INITIAL REVENUE BUDGET PROPOSALS 2012/13 (DFICTP) -
The Head of Financial Services reminded Members that the report under consideration had been prepared on the basis of the provisional Revenue Support Grant (RSG) settlement. Notification of the final settlement had now been received. The final settlement, which showed a 0.3% increase as opposed to the 0.2% indicative figure, still represented a significant reduction in real terms.
Paragraphs 7 to 27 of the report set out the position for the current year. Appendix 1 to the report set out the necessary transfers to the original estimate for 2011/12. A table comparing the amended original budget with the projected outturn for 2011/12 was shown in paragraph 8 which clearly illustrated the position in relation to Social Services. Details pertaining to the situation in respect of Children Services and Adult Services were contained within paragraphs 15 and 16, the net deficit being £1.061m. and £1.935m. respectively. The need for the Director of Social Services to take the necessary action to bring the budget back into line with the base budget was reaffirmed.
The next step was to produce the base budget (the cost of providing current service levels up-rated for inflation and committed growth). Details were contained in paragraphs 28 to 42 of the report together with the relevant appendices thereto. Directors would be instructed to prepare initial revenue budgets for 2012/13 in accordance with a timetable agreed by the Director of Finance, ICT and Property on the criteria stipulated in paragraph 31. A summary of the overall base budget for 2012/13 was appended to the report. It was noted that in order to match expenditure to resources, savings targets as set by Cabinet would need to be built in. A list of cost pressures totalling £7.044 was appended to the report. The addition of inflation and committed growth brought cost pressures to a total of £11m. in the context of a 0.3% increase in funding. It was noted that an increase in Council tax of 1% would yield approximately £0.5m.
The Head of Service explained that no comments had been referred onto this Committee from either the Scrutiny Committee (Lifelong Learning) or the Scrutiny Committee (Economy and Environment). Attention was drawn to the references from the Scrutiny Committees (Social Care and Health) and (Housing and Public Protection), consideration of which had been deferred earlier in the meeting.
(1) T H A T the amended budget for 2011/12 as appended to the report be noted.
(2) T H A T the initial revenue budget proposals for 2012/13 and the recommendations thereon from other Scrutiny Committees be noted and forwarded to Cabinet and the Budget Working Party.
(3) T H A T it be noted that the Director of Social Services would take the necessary action to bring expenditure in line with base budget.
Reasons for recommendations
(1) To incorporate changes in projected spending.
(2) In order that Cabinet be informed of the comments of the Scrutiny Committees before making a final proposals on the budget.
(3) To bring Social Services expenditure in line with the base budget."
Attached as Appendix - References from Scrutiny Committee (Social Care and Health): 28th November, 2011 and Scrutiny Committee (Housing and Public Protection): 1st December, 2011